User Account

All Pages

Consist entirely of current assets and net plant equipment

Assignment Help Financial Management
Reference no: EM131532417

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. The firm has total assets of $2.8 million and net plant and equipment equals $2.3 million. It has notes payable of $140,000, long-term debt of $745,000, and total common equity of $1.55 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet.

Write out your answers completely. For example, 25 million should be entered as 25,000,000. Enter negative amounts, if any, with a minus sign.

What is the company's total debt?

What is the amount of total liabilities and equity that appears on the firm's balance sheet?

What is the balance of current assets on the firm's balance sheet?

What is the balance of current liabilities on the firm's balance sheet?

What is the amount of accounts payable and accruals on its balance sheet? [Hint: Consider this as a single line item on the firm's balance sheet.]

What is the firm's net working capital?

What is the firm's net operating working capital?

What is the monetary difference between your answers to part f and g?

What does this difference indicate?

a. The difference indicates Notes Payable Balance

b. The difference indicates Accounts Payable Balance

c. The difference indicates Current Liablilties Balance

Reference no: EM131532417

Questions Cloud

Most currency futures trade on either the nyse or nasdaq : Most currency futures trade on either the NYSE or NASDAQ. Futures contracts are self regulated, which increases the risk of trading for investors.
What will cash flows for this project be : The tax rate is 35 percent and the required return on the project is 11 percent. (Use SL depreciation table) What will the cash flows for this project be?
Find the japanese firm profit-loss on the forward contract : Find the Japanese firm's profit/loss (in terms of yen) on the forward contract if the spot rate is A$.0084/¥ at expiration.
What is the aftertax cash flow from the sale of this asset : what is the aftertax cash flow from the sale of this asset?
Consist entirely of current assets and net plant equipment : The assets of Dallas & Associates consist entirely of current assets and net plant and equipment. What is the company's total debt?
How much money will investor need to open margin position : How much money will the investor need to open his margin position?
Find the investor ending margin balance : Find the investor's ending margin balance (in USD) on Tuesday.
What is its times-interest-earned ratio : Its basic earning power (BEP) ratio is 17%, and its return on assets (ROA) is 5%. What is its times-interest-earned (TIE) ratio?
Explain the theory of optimal capital structure : Explain the theory of optimal capital structure (trade off theory). What is the behavioral challenge in achieving efficiency?

Reviews

Write a Review

Financial Management Questions & Answers

  Expansion of the commercial paper market

What factors contribute to an expansion of the commercial paper market and what factors cause a contraction in the commercial paper market?

  Two machines are being considered for manufacturing process

Two machines are being considered for a manufacturing process. Machine A has a first cost of $75, 200, and its salvage value at the end of six years of estimated service life is $21,000. The operating costs of this machine are estimated to be $6, 800..

  Calculate the Cash Flow DOL for this firm

The law firm of Dewey, Cheatem, and Howe has monthly fixed costs of $98,000, EBIT of $223,000, and depreciation charges on its office furniture and computers of $7,000. Calculate the Cash Flow DOL for this firm.

  Suppose that the current two-year spot rate

Suppose that the current two-year spot rate is 5.4%, with a forward rate of 7.7% (one-year spot rate is 3.1%). If forward rates are not realized and instead are higher than expected, would you rather go short or long the 2 year spot today? Prove math..

  What is the NPV of this investment

Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $820,322, $863,275, $937,250, $1,017,610, $1,212,960, and $1,225,000 over the next six years. If the appropriate disco..

  How much should he set aside today for the purchase

Stephen plans to purchase a car 3 years from now. The car will cost $45,148 at that time. Assume that Stephen can earn 9.95 percent (compounded monthly) on his money. How much should he set aside today for the purchase?

  What is current share price

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next ten years, what is the current share price?

  What was bailys rate of return for the six months

Lamar Baily purchased a 7 percent coupon corporate bond that matured in 10 years and paid interest semiannually. He paid $ 2,800 and six months later, immediately following an interest payment, he sold the bond. At the time of sale, the market intere..

  How much money do you need to invest in zero coupon bonds

how much money do you need to invest in zero coupon bonds today in order to have your $35,000 down payment when you want to purchase the house?

  Calculate the cost of equity using the DDM method

Floyd Industries stock has a beta of 1.25. The company just paid a dividend of $.40, and the dividends are expected to grow at 5 percent per year. The expected return on the market is 12 percent, and Treasury bills are yielding 5.0 percent. The most ..

  What is the current share price

Apocalyptica Corp. pays a constant $9.50 dividend on its stock. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. If the required return on this stock is 11 percent, what is the current share ..

  Rate of return will you earn on initial investment in bond

Suppose you purchase a 30-year Treasury bond with a 7% annual coupon, initially trading at par. In 10 years time the bond's yield to maturity has risen to 8% (EAR). (Assume $100 face value bond)  If you sell the bond now, what internal rate of return..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd